Stock futures move higher ahead of August jobs data

Stock index futures rose on Friday ahead of a report expected to show the smallest number of job losses so far this year in August as the economy advances out of a recession.

U.S. employers are expected to have eliminated 225,000 jobs last month, down from 247,000 in July, according to economists polled by Reuters. But the unemployment rate is seen rising to 9.5 percent from 9.4 percent.

Kim Caughey, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh, said investors expected the jobless number may be better than forecast following the ADP private jobs report earlier this week. But she warned that low volumes ahead of the U.S. Labor Day holiday weekend may increase volatility.

Luck is on the side of the jobs number today because a fair amount of people aren't going to be sitting in their offices looking at that number, she said. But that can make for outsize reactions because there aren't enough participants in the market.

Intel Corp Chief Executive Paul Otellini said he expects business demand for personal computers to pick up in 2010 after spending cuts this year. The comments, which underscored growing optimism in the technology industry, were made in an interview with the Financial Times on Friday.

Socgen raised it price target on Apple Inc to $225 from $170 and gave the stock a buy rating. The stock rose slightly in premarket trades.

Stocks snapped a four-day losing streak on Thursday. Some investors have been quick to call the losses the start of a pullback from a 50 percent surge in the S&P 500 since March, citing concerns the rally had run ahead of the economic recovery.

Overseas markets were broadly higher, with the Shanghai Composite index up 0.6 percent, and European shares gaining about 1 percent.